Robinsons Retail Holdings, Inc. · PSE:RRHI

Robinsons Retail — Q1 2017 Earnings Presentation

29 slides from Robinsons Retail's earnings presentation, 2017

  1. Slide 1: Robinsons Retail Holdings, Inc.

    ROBINSONS RETAIL HOLDINGS,INC.

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains certain forward looking statements with respect to the financial condition, results of operations and businesses of Robinsons Retail Holdings, Inc. (RRHI). Such forward looking statements involve known and unknown risks, uncertainties and other factors which may

  3. Slide 3: Agenda

    Agenda Results Highlights Store Network Consolidated Results Business Segments Working Capital Capital Expenditure Recent Developments 2

  4. Slide 4: 1Q2017 Unaudited Results Highlights

    1Q2017 Unaudited Results Highlights 3

  5. Slide 5: Nationwide Presence

    Nationwide Presence Metro Manila 1,588stores Visayas Business segment Supermarkets Department stores # of stores 47 13 Plus 1,927 TGP branches Business segment Supermarkets # of stores 20 Nationwide Department stores 8 DIY stores 49 DIY stores 35 Convenience stores 316 Convenience stores 27 Drug sto

  6. Slide 6: 1Q2017 Stores and Gross Floor Area Statistics

    1Q2017 Stores and Gross Floor Area Statistics1 Number of RLC Gross Floor Stores Outside RLC Area (GFA) (in ‘000 sqm) 1,5061,578 1,514 1,588 270 300 273 301 1,045 1,236 1,278 974 1,060 1,241 1,287 967 2015 2016 2015 2016 1Q2016 1Q2016 1Q2017 1Q2017 GFA GFA Contribution Contribution by Lessor by Segme

  7. Slide 7: Consolidated Results

    Consolidated Results Net Sales1 (₱ bn) SSSG (%) 105.3 9.0% 12.3 6.7% 90.9 11.9 4.1% 3.2% 9.3 8.1 5.7 25.7 5.5 11.1 22.7 2.9 9.9 2015 2016 1Q2016 1Q2017 2.5 3.5 15.8 14.9 2.2 1.4 1.4 2.8 2.5 3.2 3.3  13.3% yoy net sales growth in 1Q2017: 43.2 48.5 11.0 11.9  10.1% from new stores  3.2% from SSSG 2

  8. Slide 8: 1Q2017 Contribution Per Segment

    1Q2017 Contribution Per Segment Net Sales EBIT EBITDA Breakdown Breakdown Breakdown Discretionary Retailing 11.3% 9.7% 11.5% 35% 10.9% 22.6% 17.2% 46.2% 46.3% 44.8% 12.7% 1.5% -3.2% 15.4% 13.6% 18.0% 5.3% 6.6% 9.6% 7

  9. Slide 9: Consolidated Results

    Consolidated Results Gross Profit (₱ mm) EBITDA (₱ mm) -♦- % of net sales -♦- % of net sales 21.7% 21.9% 21.2% 22.2% 7.0% 7.2% 5.9% 6.4% 23,026 19,749 7,531 6,376 Net income 4,805 5,719 1,348 1,651 attributable to equity holders 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 of the parent EBIT (₱ m

  10. Slide 10: Operating Expenses

    Operating Expenses Adjusted Operating Expenses1 (₱ mm, % of Net Sales) % of net sales 17.4% 17.8% 16.8% 16.7% Rental and utilities 17,614 Personnel costs and contracted services 15,236 Others 8,382 8.0% 7,486 8.2% OPEX was up as sales of new 5,563 5.3% 4,580 stores are still 4,805 5.3% 3,946 ramping

  11. Slide 11: Supermarket Business Segment

    Supermarket Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 48,465 43,239 9,295 8,203 3,453 3,009 10,960 11,897 2,011 2,239 655 739 19.0% 19.2% 18.4% 18.8% 7.0% 7.1% 6.0% 6.2% 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 Increase in 1Q2017 sales driven

  12. Slide 12: Supermarket Business Segment: SSSG and Store Count

    Supermarket Business Segment SSSG Store Count Healthy 8.7% 140 140 SSSG due 6.2% to higher 3.3% 2.8% 124 124 basket size 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 11

  13. Slide 13: Department Store Business Segment

    Department Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 15,828 14,906 3,926 4,114 1,153 1,143 3,154 3,278 807 868 171 158 26.3% 26.0% 25.6% 26.5% 7.7% 7.2% 5.4% 4.8% 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 Increase in 1Q2017 sales driven b

  14. Slide 14: Department Store Business Segment: SSSG and Store Count

    Department Store Business Segment SSSG Store Count SSSG 7.5% 44 softened 5.5% 43 5.1% 42 from last year’s high 40 base 0.1% 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 13

  15. Slide 15: DIY Store Business Segment

    DIY Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 11,129 9,872 3,504 3,067 1,067 945 2,480 2,813 912 792 255 218 31.1% 31.5% 31.9% 32.4% 9.6% 9.6% 8.8% 9.1% 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 Growth in net sales driven by robust SSSG (

  16. Slide 16: DIY Store Business Segment: SSSG and Store Count

    DIY Store Business Segment SSSG Store Count Robust SSSG 179 due to 178 9.8% sustained 7.7% 8.4% strong 166 166 5.0% residential construction activities 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 15

  17. Slide 17: Convenience Store Business Segment

    Convenience Store Business Segment System-wide Sales Gross Profit EBITDA (₱ mm) & Net Sales (₱ mm) & Royalty Income (₱ mm) 37.7% 40.4% 39.4% 39.6% 8,514 7,961 2,291 2,070 319 System-wide sales 271 1,544 1,721 Net sales 5,493 5,666 2,079 2,071 547 542 82 416 416 24 1,385 1,367 527 570 4.9% 5.6% 5.9%

  18. Slide 18: Convenience Store Business Segment: SSSG and Store Count

    Convenience Store Business Segment SSSG Store Count SSSG declined due to stricter 7.0% 519 518 government 5.4% 4.2% regulations on 499 selling of 493 -1.2% cigarettes and liquor 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 17

  19. Slide 19: Drugstore Business Segment

    Drugstore Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 11,934 2,068 8,070 711 1,265 373 3,494 679 285 2,229 362 107 15.7% 17.3% 16.2% 19.4% 6.0% 4.8% 8.1% 4.6% 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 Growth in 1Q2017 sales propelled by the acqui

  20. Slide 20: Drugstore Business Segment: SSSG and Store Count

    Drugstore Business Segment SSSG Store Count Healthy 10.7% SSSG 7.4% due to higher 1,912 1,927 productivity of 3.3% 3.8% stores 367 412 378 423 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 19

  21. Slide 21: Specialty Store Business Segment

    Specialty Store Business Segment Net Sales (₱ mm) Gross Profit (₱ mm) EBITDA (₱ mm) 13,416 10,359 3,476 2,761 848 635 2,722 3,147 702 895 203 28.4% 118 26.7% 25.9% 25.8% 6.1% 6.3% 4.3% 6.4% 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 Growth in net sales driven by the stro

  22. Slide 22: Specialty Store Business Segment: SSSG and Store Count

    Specialty Store Business Segment SSSG Store Count Strong SSSG 12.4% 12.7% 309 driven by 306 appliances, one-price point 6.5% 4.9% 288 288 and beauty formats 2015 2016 1Q2016 1Q2017 2015 2016 1Q2016 1Q2017 21

  23. Slide 23: Working Capital

    Working Capital Working capital days trend 7.1 6.9 5.4 Trade receivable days1 2015 2016 1Q2017 59.4 60.8 Inventory days2 54.3 2015 2016 1Q2017 75.9 74.7 62.5 Trade payable days3 2015 2016 1Q2017 Cash conversion cycle4 3.7 -14.5 -8.5 2015 2016 1Q2017 1 Trade receivable days = No. of days x Trade and

  24. Slide 24: Capital Expenditure

    Capital Expenditure Breakdown of Capital Expenditure including Acquisitions (₱ mm)1 % of group’s net sales 4.5% 5.3% 2.5% 5,620 10% 4,089 43% 634 37% 14% 11% 3% 4% 4% 10% 7% 8% 7% 10% 23% 10% 32% 26% 39% 20151 2016 1Q2017 Capital expenditure includes acquisitions, expenses on leasehold improvements,

  25. Slide 25: Online Partnership with Zalora

    Online Partnership with Zalora 24

  26. Slide 26: Thank you!

    ROBINSONS (ZA RETAIL HOLDINGS, INC. Thank you!

  27. Slide 27: Consolidated Statements of Financial Position (Unaudited)

    Consolidated Statements of Financial Position (Unaudited) March 31 December 31 PHP mm 2017 2016 ASSETS Current Assets Cash and cash equivalents 8,981 12,718 Trade and other receivables 1,557 1,988 Merchandise inventories 13,509 13,342 Other current assets 2,282 2,185 Total Current Assets 26,328 30,2

  28. Slide 28: Consolidated Statements of Comprehensive Income (Unaudited)

    Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31 Years Ended December 31 PHP mm 2017 2016 2016 2015 Sales - net of sales discounts and returns 25,723 22,696 105,293 90,883 Cost of merchandise sold 20,004 17,891 82,267 71,134 Gross Profit 5,719 4,805 23,026 19,7

  29. Slide 29: Consolidated Statements of Cash Flows (Unaudited)

    Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31 Years Ended December 31 PHP mm 2017 2016 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 1,429 1,073 6,667 5,848 Adjustments for: Depreciation and amortization 492 443 2,038 1,647 Interest expense 4

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